RI shares end up on late rebound

RI shares end up on late rebound

Agencies Jakarta/Singapore

Indonesian shares ended slightly higher Monday, after falling in the previous two sessions, on a late rebound in select blue chips, dealers said.

Overall sentiment remained weak and cautious amid security concerns ahead of parliamentary elections next week, they added.

"The market was seen trying to recover after recent losses," said a trader with a foreign brokerage firm. The main index had fallen 3.3 percent in the previous two sessions.

After staying in negative territory for most of the day, the Jakarta Stock Exchange Composite Index ended up 0.4 percent, or 2.792 points, at 716.921, up from an intra-day low of 710.612.

Consumer goods producer Unilever Indonesia led the gainers, rising Rp 75, or 2.2 percent, to Rp 3,550 on a rebound and after the company said its 2003 net profit rose 33 percent on year to Rp 1.297 trillion.

Dealers said bargain-hunters bought shares in cigarette companies after recent falls and on expectations of higher sales this year.

Cigarette maker Gudang Garam rose Rp 100, or 0.8 percent, to Rp 12,750 and its rival Hanjaya Mandala Sampoerna gained Rp 150, or 3.4 percent, to Rp 4,575.

The rupiah ended slightly higher as market participants trimmed long positions in the dollar on abating demand from local companies.

The dollar closed at Rp 8,600, down from its close of Rp 8,615 on Friday.

Local companies have been the main dollar buyers in the past few weeks as they need the U.S. currency to pay maturing offshore debts. Local companies are saddled with around US$60 billion in foreign borrowings, and the repayment of the maturing debt usually puts pressure on the local currency.

Elsewhere in the region, the yen came within a whisker of 3-+ year highs against the dollar after a report said Japan had ended its $285 billion drive to weaken the yen, while Taiwan shares surged on hopes election turmoil was easing.

Tokyo's Nikkei average erased early gains to close down 0.5 percent at 11,718.24 as investors locked in profits on recent high-flyers such as builders and steel makers.

The yen's strength trimmed rises in some exporters such as Canon Inc, but market sentiment remained firm amid growing optimism over Japan's economic recovery.

"Overall market sentiment is still firm, but caution started emerging and short-term investors were seen starting to cash in profits," said Hiroyuki Nakai, chief strategist at Tokai Tokyo Securities.

"Also, there are growing concerns that the market's recent rally has boosted domestic-related stocks too much."

Taiwan shares jumped 5.6 percent after the opposition Nationalist Party said at the weekend it believed a recount in a fiercely contested presidential poll could begin within two days.

The index, which had been Asia's best performer outside China this year before the poll, sank 10 percent last week.

The euro hit a new year low at around $1.2050 on nervousness the European Central Bank may cut rates soon. It was at $1.2070 late on Friday.

South Korean shares rose 1.2 percent, led by a 1.8 percent rise in technology bellwether Samsung Electronics Co Ltd on expectations for strong quarterly earnings. Mobile phone maker LG Electronics climbed three percent.

Taiwan's TSMC, the world's largest contract chip maker, jumped 5.1 percent, while smaller rival United Microelectronics Corp surged seven percent. The island's electronics sub-index rose 5.5 percent.

Stock benchmarks fell 0.2 percent in Hong Kong and 0.5 percent in Australia.